India: SteelMint billet index inches down on lower bids - 6 Apr

SteelMint's daily steel billet index was assessed at INR 46,400/tonne (t) (-INR 150) exw Raipur on 6 April, 2023.

The index fell slightly due to lower bids following which spot trades of billets also moved down to 1,400 t today as against 2,570 t on 5 April.

Buyers booked billets as per their immediate needs. Meanwhile, future bookings remained limited on an uncertain price movements over the last few days.

The daily price assessment for rebars decreased by INR 100/t. Wire rods prices declined by INR 200/t in Raipur d-o-d. Sponge iron prices edged down by INR 50/t today.

Around 700 t of wire rods and 900 t of rebars deals concluded in Raipur.

The conversion spread of standalone furnaces from sponge iron (PDRI) to billets was recorded at INR 15,900/t.

Rationale -

This index has been derived based on transactions, offers, bids and indicative price data sets. Transactions are considered as T1 and given a weightage of 50% whereas other data sets are considered as T2 and given a weightage of the balance 50%.

• Transactions (T1) - Five trades at INR 46,200-46,500/t were recorded during the 11:30 am to 3:30 pm SteelMint trading window and considered for final price calculation as T1 inputs. The average of these transactions was INR 46,407/t which is given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Eight offers reported in the trading window and considered as T2 inputs. The average price of these eight was INR 46,406/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 46,407/t, rounded to INR 46,400/t exw.

Click for detailed methodology

Trade, T2 - Offer/Bid/Indicative, *Normalized price as per methodology